CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
332.24 USD
+4.49 (+1.37%)
333.63 USD
+1.39 (+0.42%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. CLS gets an excellent profitability rating and is at the same time showing great financial health properties. CLS is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, CLS could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
In the past 5 years CLS has always been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CLS has a Return On Assets of 10.85%. This is amongst the best in the industry. CLS outperforms 90.24% of its industry peers.
CLS's Return On Equity of 35.33% is amongst the best of the industry. CLS outperforms 94.31% of its industry peers.
CLS has a better Return On Invested Capital (21.33%) than 95.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLS is above the industry average of 9.11%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
Looking at the Profit Margin, with a value of 6.35%, CLS is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.33%, CLS is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
CLS's Operating Margin has improved in the last couple of years.
CLS's Gross Margin of 12.04% is on the low side compared to the rest of the industry. CLS is outperformed by 76.42% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CLS is creating value.
Compared to 1 year ago, CLS has less shares outstanding
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.39 indicates that CLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CLS (7.39) is better than 85.37% of its industry peers.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
CLS has a Debt to FCF ratio of 1.97. This is in the better half of the industry: CLS outperforms 77.24% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CLS has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: CLS underperforms 63.41% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.39 |
ROIC/WACC2.56
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
CLS's Current ratio of 1.47 is on the low side compared to the rest of the industry. CLS is outperformed by 76.42% of its industry peers.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CLS (0.88) is worse than 85.37% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 22.09%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a very strong growth in Revenue. The Revenue will grow by 27.74% on average per year.
EPS Next Y49.74%
EPS Next 2Y45.82%
EPS Next 3Y44.54%
EPS Next 5Y38.14%
Revenue Next Year24.45%
Revenue Next 2Y28.03%
Revenue Next 3Y29.6%
Revenue Next 5Y27.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 62.92, the valuation of CLS can be described as expensive.
CLS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.15, CLS is valued quite expensively.
With a Price/Forward Earnings ratio of 39.86, CLS can be considered very expensive at the moment.
CLS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.12. CLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.92 | ||
| Fwd PE | 39.86 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.98 | ||
| EV/EBITDA | 38.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
CLS's earnings are expected to grow with 44.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)1.31
EPS Next 2Y45.82%
EPS Next 3Y44.54%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
332.24
+4.49 (+1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners75.85%
Inst Owner Change-5.33%
Ins Owners0.52%
Ins Owner Change0.42%
Market Cap38.22B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target248.47 (-25.21%)
Short Float %2.96%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)54.21%
PT rev (3m)53.5%
EPS NQ rev (1m)18.75%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)5.77%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)14.35%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)4.1%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.92 | ||
| Fwd PE | 39.86 | ||
| P/S | 3.39 | ||
| P/FCF | 95.98 | ||
| P/OCF | 69.2 | ||
| P/B | 18.84 | ||
| P/tB | 27.06 | ||
| EV/EBITDA | 38.59 |
EPS(TTM)5.28
EY1.59%
EPS(NY)8.34
Fwd EY2.51%
FCF(TTM)3.46
FCFY1.04%
OCF(TTM)4.8
OCFY1.45%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.27
PEG (5Y)1.31
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.39 |
F-Score7
WACC8.35%
ROIC/WACC2.56
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y49.74%
EPS Next 2Y45.82%
EPS Next 3Y44.54%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year24.45%
Revenue Next 2Y28.03%
Revenue Next 3Y29.6%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year58.36%
EBIT Next 3Y30.72%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 49.74% in the next year.